For the last couple of years interest rates have been at record lows and it is only a matter of time before they start creeping back up again. If you own a manufactured home and the interest rate on your current mortgage is on the high end then refinancing might be a good idea. It’s also a good idea if you currently have an adjustable rate mortgage (ARM) and the interest rate is about to adjust. |
There are several reasons to refinance your current mortgage; first getting a lower interest rate can save your tens of thousands of dollars in interest payments over the life of the loan; second it can significantly lower that monthly payment, freeing up valuable cash for other purposes; and third you can tap into the equity of your home and get extra money above what you currently owe.
The most compelling reason for manufactured home refinancing is the case of the adjustable rate mortgage. Even though rates are low now, those with an ARM face the prospect of increasing interest rates that will drive up their monthly payments when those loans hit their next adjustment period. Refinancing out of that arm into a low fixed rate mortgage can take that anxiety out of the equation, ensuring a consistent payment for the life of the loan.
If you are considering refinancing your current mortgage here are some tips to make the process easier.
- Get at least four or five quotes from different lenders for the sake of comparing in order to get the best deal for your financial situation. Never jump on the first offer because here might be a better deal out there.
- Pay close attention to closing costs, fees charged by the lender, and in some cases third party fees. Excess fees and costs may offset an offered low interest rate.
- Keep an eye on interest rates as you start shopping around for the best refinance option. Rates will fluctuate on a daily basis, so it pays to keep an eye on them before you lock in.
- In some instances you can negotiate the interest rate with your prospective lender. Just make sure that they don’t charge you an increased fee which may negate the benefit of a lower rate.
- You can also negotiate the lender fees directly with the idea of saving some money. Any governmental fees cannot normally be negotiated. Again make sure any fee negotiation doe not affect the interest rate.
- Refinancing is not a good idea if you plan on moving in the next few years as you will not gain much of advantage on your long term return even with a lower rate.
Manufactured home refinancing is a great way to lower your monthly mortgage costs. Just keep the above tips in mind as you research your options to get the best available deal for your budget.
To learn more about manufactured home loans please visit the website Manufactured Home Loans & Refinance by Clicking Here.
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